DocuSign (DOCU - Free Report) closed at $196.73 in the latest trading session, marking a +0.23% move from the prior day. This change outpaced the S&P 500's 0.65% loss on the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.27%.
Prior to today's trading, shares of the provider of electronic signature technology had gained 14.33% over the past month. This has outpaced the Business Services sector's gain of 5.69% and the S&P 500's gain of 7.76% in that time.
Investors will be hoping for strength from DOCU as it approaches its next earnings release. On that day, DOCU is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 600%. Our most recent consensus estimate is calling for quarterly revenue of $318.37 million, up 35.13% from the year-ago period.
DOCU's full-year Zacks Consensus Estimates are calling for earnings of $0.46 per share and revenue of $1.32 billion. These results would represent year-over-year changes of +48.39% and +35.04%, respectively.
Investors should also note any recent changes to analyst estimates for DOCU. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DOCU is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, DOCU is currently trading at a Forward P/E ratio of 429.01. For comparison, its industry has an average Forward P/E of 33.59, which means DOCU is trading at a premium to the group.
Meanwhile, DOCU's PEG ratio is currently 13.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Technology Services was holding an average PEG ratio of 4.16 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 117, which puts it in the top 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.